Tax provisions in budget bill

On May 9, Governor Kathy Hochul signed New York’s budget bill for the 2026 fiscal year. The key tax provisions are below:

• The budget enacts a one-time inflation refund check. Specifically, joint filers with income up to $150,000 will receive a $400 check and joint filers with income over $150,000 but no greater than $300,000 will receive a $300 check. Single tax filers with income up to $75,000 will receive a $200 check and single filers with incomes over $75,000 but no greater than $150,000 will receive a $150 check.

Filers will not have to do anything to receive the refund. If a tax return was filed reporting income below the thresholds, the refund check will be issued automatically.

• The state’s first five tax brackets are cut by 20 basis points (0.2 percent) each year over two years, thus providing a reduced tax rate for joint filers up to $323,000.

• The state’s temporary high income surcharge rate is extended for five years.

• The child tax credit is expanded for three years by increasing the maximum credit from $330 to $1,000 for children under age four and $500 for children four through 16. The restrictive earned income requirement was eliminated, thereby allowing families who earn up to $170,000 to receive the credit.

Additionally, the budget extends many credits such as the clean heating fuel credit, alternative fuels credit and electric vehicle credit, workers with disabilities credit and the hire a veteran credit, among others.

— Barry Lisak